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Why Are Comps So Important to the Sale of My Home?

Why shouldn’t I price my home at whatever I want for it?

I’ve read several good articles lately that explain the need for good comps. Your realtor should be able to provide you with comps to use as the basis for pricing your home correctly. A correctly priced home will sell.

Factors to Consider

Just because another home in your neighborhood sold for a certain price, doesn’t mean your home would command the same price. There are several factors that need to be considered.

Location: If your home is by a major highway, train tracks, or busy thoroughfare, you’ll likely need to adjust your price. Your comps should contain a few houses in similar locations to compare and contrast with your own. The prices for these homes will be affected as well.

The Size & Topography of the Lot: The usability of your lot will determine its value. If you have hilly terrain that a potential buyer cannot build on or use, this needs to be considered. If you have a flat lot that is of similar size to your own, this may be more desirable and therefor command a higher price.

Renovations: Some renovations can affect the value of the home. If other homes in the neighborhood are dated with little upgrades, buyers will lean toward the home that has been spruced up. However, don’t expect to get every penny back you’ve spent on renovations if neighborhood market values are below your perceived value.

Listing Price vs. Sales Price: Understand the difference between the price at which a property was listed and the price at which it was sold. These two numbers can vary wildly in some cases. Your realtor’s comps will reflect the sale price, not the list price. List price is the price desired by a seller, sale price is the actual number he received.

Understanding comps is the first step in bringing your listing to a satisfying conclusion, selling your home.

Put My Experience to Work For You

If I can help you list and sell your home, please don’t hesitate to contact me.

Source: “What sellers need to know about comps.” Realtor Magazine, July 2016.

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Tracy Stice, R(B) ABR, CRS, GRI, Green

August 19, 2016

George,

Many home owners look at Zillow and their valuations, which can be fairly accurate in a homogeneous neighborhood with very similar floor plans and all built at the same time. The less homogeneous the neighborhood, the less accurate Zillow gets. I find the same thing true using the RPR valuations on our MLS. Take Old Wailuku Sand Hills vs a much newer home in nearby Maunaleo in Kehalani. You will get a more accurate value in Maunaleo from Zillow because it is very difficult to compare older homes, make adjustments for value, view, location, and physical obsolescence . Sellers really need an agent who can do a competent market analysis.

George A Walter

August 19, 2016

So true, Tracy.

Tracy Stice, R(B) ABR, CRS, GRI, Green

August 19, 2016

George,

Many home owners look at Zillow and their valuations, which can be fairly accurate in a homogeneous neighborhood with very similar floor plans and all built at the same time. The less homogeneous the neighborhood, the less accurate Zillow gets. I find the same thing true using the RPR valuations on our MLS. Take Old Wailuku Sand Hills vs a much newer home in nearby Maunaleo in Kehalani. You will get a more accurate value in Maunaleo from Zillow because it is very difficult to compare older homes, make adjustments for value, view, location, and physical obsolescence . Sellers really need an agent who can do a competent market analysis.

George A Walter

August 19, 2016

So true, Tracy.

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